On closing of UAB Ecoservice shares transfer transaction

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| Source: City Service
multilang-release

Vilnius, Lithuania, 2014-03-31 21:00 CEST (GLOBE NEWSWIRE) -- On 31 March 2014 Ecoservice UAB, registration no. 123044722, share transfer transaction was closed. The share purchase agreement was concluded on 21 February 2014. The final amount of transaction was LTL 56.6 million (EUR 16.4 million), including dividends amounting to LTL 5.2 million (EUR 1.5 million) paid to City Service AB.

City Service AB (hereinafter referred to as the Company) and its subsidiaries shall not be involved in waste management activities after closing and thus shall fulfil requirements of Civil code of Republic of Lithuania, according to which companies acting as residential facility managers cannot be related to waste management companies.

The shares of Ecoservice UAB is transferred to AWT Holding UAB, whose control and controlling interest, i. e. 75 per cent, shall be owned by the BaltCap Private Equity Fund II and the remaining 25 per cent of interest shall be owned by the Company. Accordingly, the Company’s investment into the authorized capital of AWT Holding UAB shall be LTL 5.1 million (EUR 1.48 million), and final amount received by the Company shall be LTL 51.5 million (EUR 14.9 million). After the transaction the Company shall not have priority rights to purchase AWT Holding UAB shares, as granted by the Law of Companies of the Republic of Lithuania.

Ecoservice UAB is a Lithuanian waste processing company, which, together with its subsidiaries, is engaged in collection, transportation and processing of secondary raw materials and household waste. The audited consolidated activity revenues of Ecoservice Group in 2013 amounted to LTL 55 million (EUR 15.92 million), the activity profit - LTL 6.34 million (EUR 1.84 million). Ecoservice UAB is listed as assets held for sale in 2013 non-audited financial statements of the Company, and net profit from discontinued activities in income statements was LTL 5.78 million (EUR 1.7 million).

The BaltCap Private Equity Fund II, launched by the dedicated private equity and venture capital investor BaltCap, invests into small and medium companies’ shares and into capital development in the Baltic States.

The Company’s financial advisors were Porta Finance, legal services were provided by the law firm Tark Grunte Sutkienė. 

         Vilius Mackonis,
         Director of Marketing and Communication Department
         +370 5 239 4900